The care sector has undergone massive reform in recent years, leading to a spike in the sale of C2 facilities.
Changes in legislation have included an increase in minimum room sizes, mandatory en-suites for new rooms and a tightening of the staff to patient ratio.
As a result operating margins have been squeezed, homes due for refurbishment have become unviable and many private operators have moved out of the market.
It's certainly not all bad news though. New operators have entered the sector throwing big budgets at the creation of much larger, purpose built homes. And for those selling out of the industry, the blow has been softened by the attractive premiums being paid for their redundant premises.
We've sold countless former care homes in recent years, and for a variety of purposes. Buyers from the private day nursery industry, however, are increasingly proving the most competitive, and in this quarter alone we've sold two former care homes for that very use.
This particular building was formerly two large semidetached houses, but had been operated for many years as a 22 bedroom care home. Frustrated by dwindling margins, our seller saw early retirement as a more attractive option, and we were instructed to market the c.7,000sqft building with vacant possession. Offers were received from a variety of sectors, but despite requiring a change of use, the best bid came from a day nursery operator. The unconditional sale completed without a hitch, and right in the very middle of lockdown!
PROJECT ADDRESS: Ashcroft, 48-50 London Lane, Bromley, Kent BR1 4HE